EUR/JPY extends the side-lined theme around 130.00

EUR/JPY keeps the rangebound trade unchanged on Monday.
JPY-buying dragged the cross to as low as the 129.70 earlier.
Japan’s flash Industrial Production contracted 1.3% MoM in February.

Pablo Piovano FXStreet

The increased buying pressure around the Japanese yen weighs on EUR/JPY and keeps it within the usual rangebound theme around the 130.00 level.

EUR/JPY looks to yields, risk

The persistent sell-off in the greenback gave extra strength to the European currency and the rest of the risk complex at the beginning of the week.

However, steady/declining US yields added to the buying sentiment around the Japanese safe haven, all rendering into further consolidation around the cross and undermining the EUR-led upside potential.

In the calendar, advanced figures in Japan saw the Industrial Production contracting at a monthly 1.3% during February, while the Adjusted trade surplus widened to ¥663.7 billion in March. Closer to home, the Current Account surplus in the broader Euroland more than doubled in February to €13.3 billion.

EUR/JPY relevant levels

At the moment the cross is losing 0.12% at 130.13 and faces the next support at 129.57 (low Apr.8) followed by 129.13 (50-day SMA) and finally 128.29 (weekly low Mar.24). On the flip side, a move past 130.68 (2021 high Apr.7) would pave the way for a test of 131.00 (psychological level) and then 131.98 (2018 high Jul.17).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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